Trading Financial markets : Trump May Ax Volcker Rule!

Long, short, Bitcoin, forex - Plenty of alternate market disuccsion.
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Joined: Sat Jul 30, 2016 8:29 pm

Thu Nov 10, 2016 9:54 pm

Remember the 2008 banking disaster?
In response, the financial industry was slapped across the face with the Dodd-Frank regulations. The Volcker rule is a key section which prevents banks from trading.

Word on the street is Trump and his merry band of republicans want to tear it up. Freeing banks up again to have fun. If this happens, you can bet big bank stocks will explode up.

The markets have made an initial reaction to this news. For now I would keep a close eye on this and learn all you can.

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Joined: Thu Dec 10, 2009 4:37 pm

Fri Nov 11, 2016 8:00 am

The rule has some serious disadvantages. Banning banks from trading has meant liquidity has dried up significantly. Market shocks aren't as easily absorbed. I'm sure there would be a lot less flash crashes if banks were there.

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Mon Jan 02, 2017 6:31 pm

Steven Eisman, the strategist portrayed by Steve Carell in "The Big Short," told CNBC on Monday he believes President-elect Donald Trump's administration will roll back financial regulations.

Eisman, senior portfolio manager at Neuberger Berman, said he would be as "long as I can be" on financial stocks.

Eisman, whose bet against the subprime housing market prior to the 2008 financial crisis was depicted in the 2015 movie, told CNBC's "Squawk Box " he was "a little bit schizophrenic" on the markets.

He said the Dodd-Frank financial regulations, put in place after the financial crisis, is "good law" that should not be changed. However, he said he understands that under the Trump administration, change is likely to come.

Eisman said he bought the financial sector the day after the election and has invested more since then.

"I'm very long" the stock market overall, he added.

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